24 June 2017
Registered Users : 153663
Current Active Users : 94160

Opportunities

View More »
Home News

Indirect Tax GST 002007

  • Telecom to banking, most services to be costlier with GST
    Jun 23, 2017
    For some days now, several service providers — from insurance and banking to telecom and hotels — have been sending emailers to customers warning of a GST-driven increase in prices starting July 1.Alarmed and unconvinced, the revenue department in the finance ministry has roped in other ministries to impress upon industry to adjust input tax credit against possible increase in tax liability.
  • Consumer-facing firms selling cars, electronics will be GST-ready only by mid-July
    Jun 23, 2017
    Consumer-facing companies selling groceries, medicines, cars and electronics could be ready for the new goods and services tax regime only by mid-July as a significant part of their ecosystem — dealers, wholesalers and retail stores — still lack basic IT infrastructure and licences for the transition.Larger companies are well on their way in putting systems in place. From the compliance perspective, they have got leeway to put it in place till August,” said Hitesh Sharma, partner.
  • FMCG companies may not make higher profits on lower GST rates
    Jun 23, 2017
    Lower rates of GST may not necessarily mean higher profits for Indian consumer firms, while the converse is equally true for those selling in limited pockets. The reason is a simple averaging of tax rates across all states instead of weighted averages, which would have mapped sales volumes to levies in the relevant states.On the surface, tax rates of certain products would have seemingly come down compared to existing rates under GST. But some companies may still have to increase.
  • Railways fears jump from 4 percent to 18 percent in tax rate under GST
    Jun 23, 2017
    The Indian Railways is worried that the tax treatment of work contracts in the goods and services tax (GST) regime would inflate its cost of expansion, as the contractors threaten the additional tax liability on them will reflect in contract values. With the transporter’s output tax liability limited — it pays service tax on passenger fares of about Rs5,000 crore annually —, it hasn’t got sufficient avenues for set-off of input taxes. The tax rate for work contracts in the GST regime will be 18%, compared with an effective rate of 4% (state VAT) now.
  • All states sans J&K pass SGST Bill to keep date with July 1
    Jun 22, 2017
    All states and Union Territories, barring Jammu and Kashmir, have passed their State GST Act, paving the way for rollout of the Goods and Services Tax from the mid-night of June 30-July 1. While Kerala and West Bengal have issued an ordinance to approve the SGST Act, all other states and UTs have passed it in their respective legislative assemblies.As of today, all the states and Union Territories (having assemblies), except the State of Jammu and Kashmir, have passed the State Goods and Services Tax (SGST) Act," a finance ministry statement said.
  • Retailers need to file single GST return every month: Hasmukh Adhia
    Jun 22, 2017
    Days before the rollout of the landmark GST, the government today sought to dispel the notion that the new tax regime will be cumbersome and compliance- heavy, saying taxpayers need to file only one return every month, similar to what they presently do.In an interview to PTI, Revenue Secretary Hasmukh Adhia said the notion that assessees will have to file three returns every month is unfounded and retailers or B2C dealers need not give invoice wise details every month.
  • Ministry of Electronics and Information Technology launches GST portal
    Jun 22, 2017
    The Ministry of Electronics and Information Technology has launched a dedicated webpage to address issues related to Information Technology Services and Electronics goods ahead of the roll out of the Goods and Services Tax on July 1.The ministry said in a statement that the webpage can be accessed through Ministry’s Web Portal at http://meity.gov.in/.
  • GST plays killjoy as clubs, NGOs face higher taxes on fundraisers
    Jun 21, 2017
    Come July and goods and services tax (GST) will play party-pooper to many fundraisers or charity events organised by non-government organisations (NGOs) and non-profit clubs. There is likely to be a steep decline in events as the total landed cost of holding them would increase by at least 20%.Many clubs and NGOs that hold meetings or fundraising events would not be able to get an input credit of the food expenses unlike in current tax regime where they would get sales tax credit.Not just that, many clubs and NGOs are complaining that under GST they won’t even get input credit on GST paid on the fees paid by their members.“Fundraisers may just become an expensive affair.
  • Pass on GST Benefits to Consumers or Get Licence Scrapped
    Jun 21, 2017
    Any business entity that fails to pass on benefits from lower taxes under the goods and services tax (GST) to consumers faces penalties and cancellation of licence under the new antiprofiteering rules.The rules notified on Tuesday allow for a five-member National Anti-Profiteering Authority that would be empowered to force reduction in prices to the extent of lower taxes, and impose penalty or even cancel registration under the Central GST Act, effectively stopping an entity from doing business.A secretary level officer in the government will head the authority that will have powers to force a business to return any undue profit earned by not passing the benefit of lower taxes to consumers along with 18% interest.
  • Punjab Assembly passes GST Bill unanimously
    Jun 20, 2017
    The Punjab State Goods and Services Tax (GST) Bill, 2017, was passed unanimously by the state Assembly here on Monday. Finance Minister Manpreet Singh Badal introduced the Bill in the House. Before the Bill was passed, former finance minister and SAD leader Parminder Singh Dhindsa, AAP leader Kanwar Sandhu and BJP MLA Som Prakash spoke on it. Sandhu expressed concerns related to an increase in the price of agriculture inputs and equipment under the GST regime because of “high” tax rates.The AAP legislator also said that Punjabi cinema will be hit after the GST rollout. He sought to know whether states will lose financial autonomy with the GST coming into force.
  • Tamil Nadu assembly passes GST Bill
    Jun 20, 2017
    With 11 days to go for the rollout of the goods and services tax across the country, the Tamil Nadu assembly on Monday passed a Bill for its implementation.State finance minister D Jayakumar assured traders and general public that enough safeguards had been taken to protect them from the effect of the new tax regime.He also claimed that the Centre had made several changes in the GST Amendment Bill, as "suggested by former chief minister J Jayalalithaa." They changed included non-inclusion of alcohol and petrol and petroleum products in the purview of the GST, he claimed.
  • Here is why GST extended deadline for filing returns
    Jun 20, 2017
    The Goods and Services Tax (GST) Council extended the deadline for filing return for the first two months and allowed a simpler format for the same citing lack of preparedness on part of the ERP providers and other businesses. However, stakeholders and industry experts including GST suvidha providers (GSPs) told FE that the lack of preparedness was largely due to Council’s decision to tweak the return forms which proved to be overwhelming for GST Network (GSTN) to incorporate in the short period available. The Council made several changes to the GST return filing form in its 15th meeting on June 3. Sources said that this delayed the testing of the system and left GSTN to deliver the application programming interface (APIs) in very little time.
  • MNC hotels stay upbeat despite GST
    Jun 20, 2017
    As per a report in The Economic Times, global hotel chains like Hilton, Hyatt Hotels and Resorts, and Carlson Rezidor said they are committed to their future investments and development plans in the country despite luxury hotels being taxed at 28% under the goods and services tax (GST) regime. According to some industry estimates, GST rate of 28% on hotel rooms with tariffs of INR 7,500 and above will make luxury hotels in the country the most taxed in the world, surpassing hotels in New York, London and Paris, without add-on levies such as municipal tax, service charge, etc. Yet top international hotel chains remain upbeat on India.
  • GST Council meet clears 5 set of rules, defers e-way bill rule, relaxes deadline for filing returns
    Jun 19, 2017
    The GST Council on Sunday made the dreaded anti-profiteering clause more palatable specifying a sunset clause of two years even as it relaxed the deadline for filing returns under the goods and services tax (GST) till September. The Council also approved five sets of rules but deferred a decision on the E-Way Bill rule. The GST — a uniform levy across the country — will be rolled out at midnight on June 30, ahead of which the council will meet again. Jammu and Kashmir and Kerala are yet to approve the State GST law.
  • GST will not push real estate prices up, feel industry experts
    Jun 19, 2017
    With the implementation of the new tax regime just two weeks away, some real estate developers are asking for full payments for properties, even as the government has deemed any such move illegal. Caught in the middle are hapless flat owners, who do not know if post the GST implementation, they would have to pay more. “The whole week I have been trying to make sense of this. I am already paying Rs 48 lakh in total, going by what the developer said I would end up paying close to Rs 5 lakh more,” said Parashar.
  • How GST will impact your household budget
    Jun 19, 2017
    Goods and services tax (GST) comes into effect from 1 July. ET Wealth analyses the impact on some basic expenses in the household consumption basket. AUTOMOBILES The price difference will be bigger for SUVs (55% to 43%) compared to small cars (30% to 29%).Base price : Rs 20,000 Total taxes now* : Rs 5,300 Under GST : Rs 5,600 LIFE INSURANCE While premium of term plans and non-life policies are taxed, only charges (mortality and AMC charges, etc) in other life policies attract GST.Base price : Rs 15,000 Total taxes now* : Rs 2,250 Under GST : Rs 2,700.
  • Don't rush for GSTIN; provisional ID will suffice initially: Hasmukh Adhia
    Jun 19, 2017
    Traders and dealers who have not completed their registration process can continue to do their business under the GST regime from July 1 using the provisional ID, a top government official said.The 15-digit provisional ID would work as the Goods and Services Taxpayer Identification Number (GSTIN) for the first initial few months, Revenue Secretary Hasmukh Adhia said.In an interview to PTI, Adhia sought to assuage industry concerns about the GST registration process saying that businesses need not panic and need not rush for registration as the dealers and traders who have secured a provisional ID can conduct business in the new indirect regime.
  • GST: What will happen to your wallet when using credit cards at petrol pumps?
    Jun 17, 2017
    Now that the Goods and Services Tax (GST) implementation date is round the corner, there is anxiety among consumers as to how this indirect tax regime would hurt their wallets if they were to use credit cards for their fuel purchase at petrol pumps.This is more so given that the government has for now kept petroleum products out of the GST net.So, buying petrol for your car, SUV or two-wheeler at the petrol pumps will not attract GST as regards the purchase price. However, if one were to use the credit card and revolve the credit, then any interest charged by the card issuer would attract 18 per cent GST (on the interest portion) as financial services, say tax experts.Also, GST levy would get attracted at consumers’ hands if they were to absorb the Merchant Discount Rate (MDR) that petrol station owners sometimes pass on to the buyers of petrol for using debit or credit cards at the petrol pumps for completing their transactions.“Unless specifically exempt, any transaction involving a consideration for service availed would attract GST,” said R Muralidharan, Senior Director, Deloitte in India.
  • GST return filing: Excel sheet format to come on June 25
    Jun 17, 2017
    Just five days before the Goods and Services Tax (GST) is rolled out, GST Network will on June 25 launch an offline excel sheet format for use by traders and businesses to upload sales data on the GST portal. Navin Kumar, Chairman of GST-Network, said the GST return forms for all kinds of trade/sales, including composition,ecommerce, non-resident taxable person, would be put up on GSTN website by mid of July. The GSTN is the IT backbone provider for the new indirect tax regime.
  • GST to boost companies ad spend; here’s why
    Jun 17, 2017
    The Goods and Services Tax (GST) regime will enable most businesses, particularly traders, to up their advertisement budgets, according to an EY report. With credit to be available on the GST (service tax) paid while making payments to advertisers, traders could save on taxes and be able to increase their ad spend by as much as 15%. Manufactures and service providers could increase their advertisement budgets by 1% and 0.5%, respectively, thanks to enhanced input tax credit facility.In the current regime, traders pay 15% tax on their advertisement spend bill, which includes service tax of 14% and 0.5% each for Krishi Kalyan Cess (KKC) and Swachh Bharat Cess (SBC). However, since the traders pay state VAT, they can’t take credit of the service tax as the central VAT and state VAT chains are not integrated and no cross-credit is available between them. So, the entire service tax on advertisement is a cost to the traders at present.
  • 1 2 3 4 Next Last
Login
Sign Up!  |  Forgot Password?